There’s so much transpiring with Orange Julius Caesar’s cabinet nominees that it can be tough to keep up. Taxpayers and small business owners would do well to follow the pending confirmation of Steven Mnuchin, the nominee for secretary of the treasury.
When I listened to him under questioning, I realized he was the classic Trump pick — he’s very clearly the type of guy who looks out for himself. I’m anticipating all sorts of random tax laws falling from the sky. If Mnuchin starts watching our money, we small business owners need to strategize now to protect ourselves for the next three years and 50 weeks.
For a trifecta of reasons, I’m skeptical-at-best of living in Mnuchin Land:
- Steve Mnuchin’s net worth is reportedly about a half-billion dollars. How did he accumulate that amount? Let’s just say his actions resemble that of the bankers from “The Big Short,” who profited on thousands of home foreclosures during the housing bust less than a decade ago. Though those actions may have been unethical, he apparently didn’t break any laws. During the Senate Finance Committee hearing in January, he was grilled about his conduct when it came to mortgage foreclosures and claimed he wasn’t being defensive but was “proud.” So homeowners might be worried.
- Next is his Goldman Sachs background. There have been some good people to emerge from Goldman’s ranks, but this is not one of those people. Sure, being CIO of that company sounds impressive, but how does that qualify him to be secretary of the treasury? He worked in IT. He’s the fancy version of the guy you call to unfreeze your laptop.
- His most recent endeavor was that of a movie producer. He had a hand in bringing us “Batman v. Superman.” I’m sure he’s not solely to blame for getting this franchise off to a great stop, but his name is on the credits so he deserves his share of derision.
He’s well-versed in big business and possibly a kleptocrat, but I’m not completely subjective. On a good day, he’ll be looking out for the interests of big business. This could unintentionally relieve certain burdens on small businesses. Trump’s tax plan says “that pass-throughs could claim a 15 percent tax rate, but would also have to join corporations in taking on a second layer of tax — a 20 percent hit — when owners take money out of the business.”
So it helps, and then it hurts, and the guy who will oversee this plan’s implementation also has executive produced “Get Hard.” He’s carrying out Schrödinger’s tax plan — that is, one that is simultaneously a tax cut and not.
At the end of the day, you have to ensure your company’s survival. It’s going to be the wild west for a bit. Should Mnuchin be confirmed, he could approve a stripping away of tax and securities regulations. You need a qualified lawyer to leverage these changes to finance your business and make sure it won’t get hit with taxes.
Confused or afraid of what 2017’s many Schrodinger’s Taxes might bring? Contact Brinen & Associates to help leverage these changes.